@jimmyv2 , thank you very much for the explanatory notes -- very helpful.
Coming back to your example :
1. Keeping the social taxes ( you may be able to claim these if you itemize ) out of the consideration for the time being, I agree with the investment gains column for foreign taxes as 14,200 ( composed of general category 13,000 and Passive category of 1,200).
2. for the investment loss situation I agree with the Foreign taxes of 12,160 ( composed of general category of 13,000 less claw back of -840 from the passive losses that affected the general category ) ---- that is total of foreign taxes paid by you as general category. This is akin to what happens to your US taxes -- active income + effect of passive gains/losses ( even though under US rules the losses are limited and can be carried over ).
Hope this settles your query. Please rest assured that this is correct procedure of handling a loss but I would still suggest keeping all documentation available in that rare case that IRS wants documentary proof.
Is there more that I can do for you ?
pk
